Vacant home tax unexpectedly voted down by Hamilton council

After years of preparation, a vacant unit tax that was set to pass in Hamilton on Wednesday fell flat.

Some councillors voted against the bylaw, while others, who weren’t even present, are now saying the result is “shocking” and “unprofessional.”

A vacant unit tax bylaw, which was set to be enacted, was voted down in a surprise 6-6 vote with one abstention.

“I’m a little bit at a loss of words right now, still. it was so unprecedented. I don’t want to speak disparagingly of any of my council colleagues, it just came across very unprofessional,” said Ward 3 Coun. Nrinder Nann.

But Nann was absent when the vote took place due to a family member in the hospital.

READ MORE: 1 person in critical condition after Hamilton fire causes $1.5M in damages

She says she fully expected the bylaw, which would see owners of vacant properties in the city charged a 1 per cent tax to pass.

“In a reality that we’re all facing in this city of facing an extreme housing crisis, we need every single vacant unit that’s available to be occupied by Hamiltonians, and to be rented out,” said Nann.

Ward 2 Coun. Cameron Kroetsch and Ward 15 Coun. Ted McMeekin were also absent.

Kroetsch was not available for an interview on Thursday, but posted on X expressing his disappointment.

Really disappointed there was a surprise no vote on the Vacant Unit Tax yesterday and sorry I had to leave before it happened. I would have voted in favour, as I have done consistently on the VUT. For anyone following this, here’s my detailed breakdown. #HamOnt

— Cameron Kroetsch (@CameronKroetsch) November 23, 2023

Councillors who were present and voted in favour of the bylaw, were equally surprised.

“Vacant unit tax has already been deliberated by council, voted on and ratified. So it’s a decision council has made. So really, yesterday’s vote, if you want to call it that, is just a consent item. Up until this term, we have not experienced anyone voting against an enabling bylaw. So that’s why it was rather strange and disappointing,” said Ward 12 Coun. Craig Cassar.

The councillors who voted against the bylaw include Tom Jackson, Esther Pauls, Brad Clark, Jeff Beattie, Mike Spadafora, and Matt Francis.

Francis points to confusion among residents over how it works and fears that they could be mistakenly taxed even though they live in their homes.

“I got hundreds and hundreds of angry calls and emails, oppose this thing, oppose this thing, so I’ve been consistent since day one with my vote to oppose this current iteration of the vacant unit tax,” said Francis. “like i said, there’s no issue with a vacant unit tax, there’s an issue with this particular vacant unit tax and how it’s being implemented.”

The vacant unit tax is currently in place in some cities across the country, including in Toronto.

READ MORE: Rainbow Bridge still closed Thursday after explosion at Canada-U.S. border

Toronto City Coun. Brad Bradford says there were more vacant units in the city than expected.

“About 1 per cent of our housing stock, that ended up generating $54 million of revenue for the city. But again I remind folks, if the policy does its job, overtime we’ll see that number come down, there will be less and less revenue, because more and more people will be renting out those vacant units and making sure housing is being used as housing,” said Bradford.

A representative from the City of Hamilton tells CHCH News that staff met on Thursday to discuss next steps.

The bylaw will be discussed again at the next council meeting in December.